A multinational firm (MNF) operates in multiple countries through subsidiaries, joint ventures, and franchising to gain technological advantages, develop international brands, access cheap labor, and increase market share. Major MNFs include Walmart, Royal Dutch Shell, Exxon Mobil, BP, and Toyota. While MNFs create jobs and investment in host countries, they can also relocate production sites and transfer capital abroad. Success depends on political, economic, social, and technological factors in different nations.

3. • An enterprise operating in several countries but managed from
one (home) country..
• A Multinational firm (MNF) do several activities like
exporting, importing, manufacturing in different countries.

4. • When, a company want to get technological
advantage.
• When a company develop an international brand like
for exple coca cola that have an international brand
• To get cheap labor.( a few go in china to reduce labor
cost)
• To increase the market share

5. • First create Subsidiaries : is An enterprise
controlled by another (called the parent) that have more than
50 percent of capital
• Make Joint Ventures :it's the creation of a common
entity by two company that put together their resource to
achieve a common goal
• Franchising : Franchising is agreement by which a
company called "franchisor" is agrees to providing a second
business, called "franchised" trademark and expertise in return
for remuneration .

6. • Innovations: when a MNF develop new product and
make new designs of product.
• Market characteristic : it’s effective market
information, advertising effective, goodwill .
• Technological advantages MNF enable to invest in
research and develop advanced technology
• Financial superiority: MNfs have huge financial resources.
They can use funds more effectively.

7. • Horizontally integrated : is manage production located
in different countries to produce to same poduct.
• vertically integrated : when There are Merger of
companies at different stages of in the same industry.
• Diversified Company: is a company that operates or
invests in several bussines sector

8. • Create employment for host country
• Increase in the investment level the income and employment
in the host country.
• Acquisition of raw materials from abroad.(home
country).
• Get benefits of foreign culture.(home country)

9. • relocation of production sites deletes several
jobs.(home country)
• Transfer capital to other countries and cause
unfavorable balance of payments.(home country)
• the FMN competes with domestic enterprises.(host
country)

10. WORLD’S TOP MNFs:

11. Top 10 of MNF’s
RANK COMPANY COUNTRY FIELD
1 Wal-Mart Stores United States Retail
2 Royal Dutch Shell Netherlands Petroleum
3 Exxon Mobil United States Petroleum
4 BP United Kingdom Petroleum
5 Sinopec China Petroleum
6
China National
Petroleum
China Petroleum
7 State Grid China Power
8 Toyota Motor Japan Automobiles
9 Japan Post Holdings Japan Diversified
10 Chevron United States Petroleum

12. MNfs are suitable for only a set of business categories :
• Businesses where the Government wants to enjoy foreign
technology and foreign capital
• Where foreign management expertise is needed
• Where an increase in employment opportunities in the country can
be seen as a national interest

13. • Rule of Thumb :
A company whose foreign sales are 25% or more of
total sales. This ratio is high for small countries, but
low for large countries.

14. Subsidiaries in
foreign
countries; Operations in a
number of
countries;
Stakeholders are
from different
countries.

16. Strengths
• Low Cost
• Well Developed
Infrastructure
Weakness
• Location is often very distant
• Lack of Transportation facilities
• Relative Inflexibility
Opportunities
• new markets
• international expension • Govt. restrictions
• substitutes products

17. • Political Factors : concern government policies, laws and
administrative orientations of different countries and regional
economic blocks.
• Economic Factors : Rates of economic growth influence the
levels of demand for your products or services in international
markets.
• Social Factors : Demographic factors such as religion and
culture affect the types, quality, functional features and
demand
• Technological Factors : The availability of technological
infrastructure and technical capacities determine the
prosperity of a multinational corporation in host countries.